Licence to Occupy Agreement
Many medical practices are now licensing rooms in their practice for use by independent doctors instead of leasing. There are various benefits of licensing as opposed to leasing, such as:
- A licence can be limited to the use of the rooms at certain times of day and may be restrained by further conditions.
- The licence does not confer any property rights upon the licensee.
- A licence will commonly provide that the licensor will receive a percentage of the income generated by the licensee through the licensee’s business. In contrast, leases usually charge a fixed rental amount for each rental period.
- A licence can be revoked at any time, while a lease may entitle the tenant to a minimum lease term of five years and requires the landlord to produce a disclosure statement in relation to the leased premises.
- A licensee is responsible for all paperwork associated with running his or her business.
AMA Victoria’s pro-forma Licence to Occupy Agreement is intended to be used where medical practitioners provide a room or rooms within their clinic or practice premises to another medical practitioner.
It includes standard provisions relating to the operation of the practice from the licensed rooms, as this may have a bearing on the overall business conducted by other medical practitioners operating their practices from the same clinic or premises.
Purchasers receive a hard-copy draft agreement and an electronic Word version that can be tailored to individual needs.
AMA Victoria recommends that both the licensor and licensee obtain independent legal advice before entering into a licence to occupy agreement.
AMA Victoria Members: $443.50* (inc. GST and postage)
Non members: $613.50* (inc. GST and postage)
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